Clark University Clark Digital Commons International Development, Community and Master’s Papers Environment (IDCE) 5-2017 An Analysis Of Corruption In China: The uaG nxi Network Of Chinese High Level Officials And Governors Xiangru YIN Clark University, [email protected] Follow this and additional works at: https://commons.clarku.edu/idce_masters_papers Part of the International and Area Studies Commons Recommended Citation YIN, Xiangru, "An Analysis Of Corruption In China: The uaG nxi Network Of Chinese High Level Officials And Governors" (2017). International Development, Community and Environment (IDCE). 140. https://commons.clarku.edu/idce_masters_papers/140 This Research Paper is brought to you for free and open access by the Master’s Papers at Clark Digital Commons. It has been accepted for inclusion in International Development, Community and Environment (IDCE) by an authorized administrator of Clark Digital Commons. For more information, please contact [email protected], [email protected]. AN ANALYSIS OF CORRUPTION IN CHINA: THE GUANXI NETWORK OF CHINESE HIGH LEVEL OFFICIALS AND GOVERNORS Xiangru YIN MAY 2017 A Master’s Paper Submitted to the faculty of Clark University, Worcester, Massachusetts, in partial fulfillment of the requirements for the degree of Master of Arts in the Department of International Development, Community and Environment And accepted on the recommendation of Professor Jude Fernando, First Reader Professor Sasha Adkins, Second Reader ABSTRACT AN ANALYSIS OF CORRUPTION IN CHINA: THE GUANXI NETWORK OF CHINESE HIGH LEVEL OFFICIALS AND GOVERNORS Xiangru YIN Corruption is considered as one of the biggest hurdles faced by the Chinese government, as it has the effect of thwarting economic growth by perpetuating poverty and income inequality, and discouraging foreign investments into the country. However, unlike other countries, China is a special case because of the Chinese concept of guanxi that highlights the importance of maintaining relationships and networks. This system helps to better understand corruption in the Chinese context. The rules of guanxi are deeply embedded in Chinese society, making it very difficult to distinguish a legitimate guanxi practice from corruption. By understanding this system, it helps in locating ways how guanxi leads to corruption. Positivism is used to determine the seriousness of corruption in China and how it is related to the practice guanxi. Moreover, a quantitative research approach is used to offer a great level of depth to the issue on hand. This study uses scientific research methodology by making an observation and empirical evidences about the social behavior in China, through the critical analysis of a segment of a published body of knowledge such as corruption cases from publicly available data and to determine the role guanxi at each case. Based on the analysis conducted, it was found that guanxi is considered as a moral norm in the country that dramatically influences what constitutes a suitable social behavior within the Chinese culture. Guanxi also provides the standards and rules on the establishment, continuance, and use of relationships and connections. More specifically, guanxi has profound influence on almost all social interactions in China, whether it is in the government or in business. As such, it blurs the line between normal guanxi relationships and corrupt practices, making corruption an intrinsic characteristic of the Chinese government, as well as the Chinese society. Therefore, it is of great significance to talk about the relationship between guanxi network and corruption in that guanxi is a part of Chinese culture but distorted recently. Jude Fernando, Ph.D. Chief Instructor Sasha Adkins, Ph.D. Candidate Assistant Professor ACADEMIC HISTORY Name (in full): Xiangru YIN Date: MAY 2017 Baccalaureate Degree: Bachelor of Arts in English Source: Hainan University, China Date: JUNE 2012 Other Degrees: Master of Arts in Social Development Studies Source: City University of Hong Kong, China Date: JUNE 2013 Occupation and Academic Connection: Assistant Teacher in Human Resource Management, Shandong Vocational College of Science and Technology, Weifang City, Shandong Province, China. ACKNOWLEDGEMENTS First and foremost, I would like to show my deepest gratitude to my first reader, Professor Jude Fernando, a respectable, responsible and resourceful scholar, who has provided me with valuable guidance in every stage of the writing of my Master Paper. Without his enlightening instruction, impressive kindness and patience, I could not have completed my Master Paper. His keen and vigorous academic observation enlightens me not only in this paper, but also in my future study. I shall extend my thanks to my second reader, Professor Sasha Adkins for all her kindness and help. She has helped me to develop the fundamental and essential academic competence. Last but not least, I would like to thank all professors and friends in International Development and Social Change Program in Clark University, they together create an academic atmosphere and encourage one another in doing research. TABLE OF CONTENTS Page 1. Introduction……………………………………………………………………………5 2. Literature Review………………………………………………………………………7 3. Research Questions, Aim and Objectives, Significance, feasibility, & scope….……..12 4. Methodology…………………………………………………………………………..15 4.1 Philosophical Consideration and Research Approach…………………………….16 4.2 Research Design…………………………………………………………………..16 4.3 Research Instrument………………………………………………………………17 4.4 Data Collection and Analysis...……………………………………………………17 4.5 Trustworthiness of the Method……………………………………………………19 5. Analysis………………………………………………………………………………...19 6. Conclusion……………………………………………………………………………...35 7. References………………………………………………………………………………37 1. INTRODUCTION 1.1 Background of the Study Corruption is a long-festering blight on China’s reputation, especially in Western countries. Based on a definition given by Seligson (2002), corruption can be simply defined as the abuse of public office for personal gains. This undermines both the legitimacy of the government and systems, and the entire economy (Seligson, 2002; Zhu & Zhang, 2016). Corruption in China has become so rampant that high level government officials learned to trade favors for their financial gain (Zhang, 2014). In fact, in China, the massive corruption in various government offices and departments has urged Chinese President Xi Jinping to launch a corruption crackdown shortly after he took office during the late 2012. After four years, tens of thousands of Chinese government officials, both in high and low ranks, have been removed from office, while others are jailed, sentenced or even executed. One of the reasons for the pervasiveness of corruption in China was attributed to the abuse on using the Chinese concept of “guanxi”, which is roughly equivalent to “relationships”, “connections” or “networks”. More specifically, guanxi can be defined as a wide system of influential relationships and mutually beneficial social networks that facilitate business dealings and other transactions (Hope, 2014). This system is originated from the Chinese social philosophy of Confucianism. Guanxi is formed through family ties, other familiar connections such as friends, peers, colleagues, or former classmates, and even between strangers. While through family ties is the most common way to develop connections, guanxi can still be developed by means of finding or developing a basis of familiarity that builds a way for building connections or relationships, either through introductions by friends, school or office connections, similarities of origins, hobbies, and the like. Another related concept of guanxi that is embodied within the Chinese cultural practices of reciprocal indebtedness includes ganqing, wu-lune, yi-ren and ren, and the idea of face. Ganqing is translated as “feeling” (Zhou et. al., 2015). This refers to the sense of the relationship surrounding two people or two groups. The wu-lune concept refers to the idea of a long-term relationship established between a business and its clients. Yi-ren and ren on the other hand refers to the idea that supports empathy and reciprocity while the idea of “face” refers to the idea of preserving prestige and dignity in the social concept. In other countries in Asia like in Arab nations, guanxi can be termed as “wasata,” which refers to nepotism or popularly called as the “who you know” relationship (Lall, 2017). It can be termed as favoritism because of preferring someone known to the person in authority rather than preferring someone by merit. In Philippines, the “who you know” relationship is also prevalent not only in the social context but also in the political context including business management. In these countries where the Chinese-termed guanxi exist, corruption exists. The Transparency International reports a data showing the rank of five Arab countries from the top ten most corrupt nations from the data released by CPI in 2013. These countries are Syria, Iraq, Libya, Somalia, and Sudan (Aljazeera, 2013). Philippines on the other hand is ranked as “the 101 least corrupt nation out of 175 countries, according to the 2016 Corruption Perceptions Index reported by Transparency International” (Trading Economics, 2016). Guanxi is very important in China because it allows people to use them to benefit themselves or ask for favors. Through a series of interactions and exchanges of favors and gifts, an influential guanxi network is developed over time,